HV Ken Posted January 31, 2015 Report Share Posted January 31, 2015 (edited) OK - so we have our first affordability exemption test. Here is our calculation - just looking to ensure our thinking is right! 1) Since the cost minus the Premium Assistance Credit (if client had insurance) is less than 8% of MAGI, insurance is considered affordable and penalty applies. 2) Perhaps I have completely missed it, but do we have a worksheet to perform this calculation in the ATX software? (This snipet is from a simple spreadsheet I created....) MAGI $23,064.00 (from tax return) 8% of MAGI $ 1,845.12 monthly $ 153.76 Cost of single lowest bronze plan $261.93 (NYS lookup) premium assistance credit $208.00 (from 8962) Cost - credit $ 53.93 Result: Affordable Edited January 31, 2015 by HV Ken Quote Link to comment Share on other sites More sharing options...
easytax Posted January 31, 2015 Report Share Posted January 31, 2015 (edited) HV Ken, Just double checked and NO the worksheets are NOT in current ATX 14.4v. I went over to the ATX board and have asked as if memory serves (and that is big IF sometime) they had discussed providing the worksheets in the 14.4 update that happened this past Thursday. If they answer, I will share. Right now the only worksheets outside the HHS site I can find are in the instructions of the 8965 form (pages 10 & 11). Edited January 31, 2015 by easytax Quote Link to comment Share on other sites More sharing options...
easytax Posted January 31, 2015 Report Share Posted January 31, 2015 (edited) HV Ken, Just double checked and NO the worksheets are NOT in current ATX 14.4v. I went over to the ATX board and have asked as if memory serves (and that is big IF sometime) they had discussed providing the worksheets in the 14.4 update that happened this past Thursday. If they answer, I will share. Right now the only worksheets outside the HHS site I can find are in the instructions of the 8965 form (pages 10 & 11). Kirstin at ATX does GREAT and quick work. As Maxwell Smart (of "Control") friend to "99" says --- missed my editing time window on previous post by ====this=== much. Anyway, she reminded me that updates and form "enhancements" are two separate things. The 8965 is being "enhanced" to add the worksheets - but with no release date --- (my comment) -- could be today might be next week??? Edited January 31, 2015 by easytax Quote Link to comment Share on other sites More sharing options...
Vityaba Posted January 31, 2015 Report Share Posted January 31, 2015 This calculator does all the magic: http://www.valuepenguin.com/ppaca/exchanges/ I played with it today for a few hours, verified calculations by checking healthcare.gov Bronze and SLCSP rates for several scenarios and everything was matching. 3 Quote Link to comment Share on other sites More sharing options...
HV Ken Posted January 31, 2015 Author Report Share Posted January 31, 2015 Thanks Vityaba! Just tried it out on my example in my original post to this thread and it matched it perfectly. Quote Link to comment Share on other sites More sharing options...
easytax Posted February 3, 2015 Report Share Posted February 3, 2015 Affordability worksheets for the 8965 were added to the ATX form yesterday about 1830 hrs. 2 Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 3, 2015 Report Share Posted February 3, 2015 OK - so we have our first affordability exemption test. Here is our calculation - just looking to ensure our thinking is right! 1) Since the cost minus the Premium Assistance Credit (if client had insurance) is less than 8% of MAGI, insurance is considered affordable and penalty applies. 2) Perhaps I have completely missed it, but do we have a worksheet to perform this calculation in the ATX software? (This snipet is from a simple spreadsheet I created....) MAGI $23,064.00 (from tax return) 8% of MAGI $ 1,845.12 monthly $ 153.76 Cost of single lowest bronze plan $261.93 (NYS lookup) premium assistance credit $208.00 (from 8962) Cost - credit $ 53.93 Result: Affordable If you do these work sheets, it will always be affordable, correct? That's because if the price for insurance is higher or the income is lower, then the credit is higher to the point that it will be free (medicare), correct? Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 3, 2015 Report Share Posted February 3, 2015 If you do these work sheets, it will always be affordable, correct? That's because if the price for insurance is higher or the income is lower, then the credit is higher to the point that it will be free (medicare), correct? I think if income is between 100% - 400% of poverty level, it's going to be affordable, unless everybody smokes like a freight train. Pretty much. Yes. Quote Link to comment Share on other sites More sharing options...
Pacun Posted February 3, 2015 Report Share Posted February 3, 2015 (edited) I think if income is between 100% - 400% of poverty level, it's going to be affordable, unless everybody smokes like a freight train. Pretty much. Yes. That's 98% of my clients. (not the smoke part). Edited February 3, 2015 by Pacun Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 3, 2015 Report Share Posted February 3, 2015 That's 98% of my clients. (not the smoke part). Yeah, well, they are probably lying. (About the smoke part.) Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted February 3, 2015 Report Share Posted February 3, 2015 Yeah, well, they are probably lying. (About the smoke part.) Good thing they only ask about smoking. This stuff is going to drive me to drink like a fish since I am not allowed to smoke like a chimney. /s 3 Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 3, 2015 Report Share Posted February 3, 2015 Good thing they only ask about smoking. This stuff is going to drive me to drink like a fish since I am not allowed to smoke like a chimney. /s At least they knew to make accountants handle this instead of Philadelphia lawyers. /s 1 Quote Link to comment Share on other sites More sharing options...
Marie Posted February 4, 2015 Report Share Posted February 4, 2015 In ATX, The worksheet in the 8965 with the links to insurance information doesn't seem to figure the insurance credit. When I use the valuepen website, it figures the premium with the subsidy, which I've been using as the cost of insurance. the worksheet linkjust shows total premium, which most times is unaffordable for lower income tax payers. Am I doing it wrong? has anyone else filled in that worksheet? Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 4, 2015 Report Share Posted February 4, 2015 My question is why does the subsidy calculate into the 1040 tax exemption for code A at the time of filing the return? The only way to get the subsidy is through the market place which will in turn give the advanced premium tax credit that you cannot get at the end of the year. Am I missing something here? I will have to review my study materials as I don't clearly remember the subsidy coming into play for the 1040 filing. I guess it makes some sense that it should because the bottom line with the subsidy would be the actual out of pocket cost. Quote Link to comment Share on other sites More sharing options...
RitaB Posted February 4, 2015 Report Share Posted February 4, 2015 My question is why does the subsidy calculate into the 1040 tax exemption for code A at the time of filing the return? The only way to get the subsidy is through the market place which will in turn give the advanced premium tax credit that you cannot get at the end of the year. Am I missing something here? I will have to review my study materials as I don't clearly remember the subsidy coming into play for the 1040 filing. I guess it makes some sense that it should because the bottom line with the subsidy would be the actual out of pocket cost. It does make sense to use the subsidy for the exact reason you said: you have to consider the bottom line cost to determine affordability. I did not realize that at first and thought, "What the crap? The very people we (they) are coercing into getting insurance are going to escape the penalty if they don't buy insurance." And when I say "buy" insurance, I mean "get" insurance because the rest of us are paying for it and our own, too. Quote Link to comment Share on other sites More sharing options...
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